Friday, January 19, 2018

Financial Review 2017

I was ready with this financial analysis long time ago. The reason for the delay in publishing this post is the technical challenge I am facing to insert a table into blogger. By converting a table in MS Word file into an HTML page and then pasting the code, does not display the table in 'Compose' page. Last time I used Live Writer to do this. This time I tried multiple times on multiple machines to install Live Writer, but I could not even install the software. Today I am going ahead with the HTML paste wala option only.


Below are the two tables of income and expenditure. Both tables are self-explanatory. I just want to pen down some points:
a) Last year, I didn't consider the FDs as part of calculation. Hence, my earning seemed less and an apple-to-apple comparision will not be possible with last year.
b) Debt replayment is still not a category for me. However, I am storing around INR 21,000/- on behalf of Xomidhan that I will return once the new Xomidhan bank account gets opened.
c) I have been able to reduce expenses on Family affairs significantly. Last year it topped with more than 30% of my total earning. This year it is only 6.5%
d) 4.6% of my total earning I am giving as Tax to govt. of India ( I think it also includes the tax from FDs etc)
e) Income apart from salary is still very dismal. From market I earned only Rs 10K, which is 0.46% of total income.
f) The worrying factor is my percentage of investment, which is only 18% of my total earning. And, the bigger worry is the availability of liquid cash , which is around 40% of my total earning. Next year, I have to do something on this.
g) Although my food and personal expenses have increased (good sign compared to last year), my travel expenses have gone down. In fact, I have not travelled at all last year.
h) The problem I am finding - this calculation is mainly for the salary related expenses and earnings. But maket, FDs become part of it. Resource movement (say, from UK account to India account) adds a new component in earning. Hence, I can't give a target of absolute earning because, in that case, I can make a 6 Lakh FD matured and my earning will shot up like anything. If I reinvest that amount, the percentage remains same. Hence, I might not use the word 'earning', maybe 'inflow' and 'outflow' are better words.
i) As per a whatsapp message recieved from Rakesh, LIC suggested the following way of financial planning:
Household expenses- 30% | Zing (Housing, Food)- 10.85%
EMI- 30% | Zing- 0%
Lifestyle-10% | Zing (Gift, Recreation, Travel, Personal, Utility, Transportation)-13.62%
Saving-30% | Zing (investment)- 18%
Zing's extra category (Family, Tax, Loan)- 17.5%


The Income table:

Salary

Loan Repay/Rmbrsmt

Bank Interest

Others

Maturity of investment

Market

Total

Jan

₹ 92,400

₹ 10,000

₹ 150

₹ 201,165

₹ 303,715

Feb

₹ 96,119

₹ 20,360

₹ 40

₹ 116,519

March

₹ 111,387

₹ 3,963

₹ 361

₹ 42,511

₹ 2,255

₹ 160,477

April

₹ 92,020

₹ 27,748

₹ 119,768

May

₹ 111,668

₹ 96,789

₹ 7,090

₹ 215,547

June

₹ 92,020

₹ 29,514

₹ 9,086

₹ 32,700

₹ 166

₹ 163,486

July

₹ 92,020

₹ 6,150

₹ 86

₹ 98,256

August

₹ 92,020

₹ 9,100

₹ 5,400

₹ 96,930

₹ 224

₹ 203,674

Sept

₹ 12,861

₹ 1,358

₹ 14,219

Oct

₹ 304,989

₹ 10,552

₹ 4,150

₹ 97,039

₹ 227

₹ 416,957

Nov

₹ 104,445

₹ 17,859

₹ 122,304

Dec

₹ 127,523

₹ 5,250

₹ 11,666

₹ 79,601

₹ 224,040

₹ 1,316,611

₹ 140,496

₹ 33,974

₹ 86,269

₹ 571,524

₹ 10,088

₹ 2,158,962

 



The Expenditure table:

Housing

Utilities

Food/Household

Gift/Donation

Family

Investment

Recreation

Tax to govt

Travel

Personal

Transportation

Loan

Total

Jan

₹ 14,000

₹ 2,072

₹ 3,723

₹ 2,903

₹ 5,000

₹ 84,030

₹ 810

₹ 3,437

₹ 7,167

₹ 580

₹ 747

₹ 0

₹ 124,469

Feb

₹ 14,000

₹ 3,049

₹ 2,487

₹ 90

₹ 0

₹ 14,030

₹ 350

₹ 4,874

₹ 9,049

₹ 2,500

₹ 2,994

₹ 14,871

₹ 68,294

March

₹ 14,000

₹ 1,245

₹ 2,397

₹ 0

₹ 0

₹ 11,030

₹ 1,966

₹ 4,873

₹ 9,780

₹ 600

₹ 1,923

₹ 1,184

₹ 48,998

April

₹ 14,000

₹ 695

₹ 3,092

₹ 12,169

₹ 0

₹ 26,030

₹ 3,330

₹ 4,017

₹ 3,564

₹ 0

₹ 1,645

₹ 23,878

₹ 92,420

May

₹ 14,080

₹ 1,692

₹ 4,753

₹ 0

₹ 0

₹ 116,372

₹ 1,420

₹ 4,017

₹ 25,070

₹ 120

₹ 240

₹ 0

₹ 167,764

June

₹ 14,000

₹ 1,223

₹ 7,553

₹ 5,190

₹ 9,423

₹ 6,030

₹ 140

₹ 4,017

₹ 20,655

₹ 1,500

₹ 441

₹ 38,669

₹ 108,841

July

₹ 14,000

₹ 1,923

₹ 1,315

₹ 0

₹ 0

₹ 6,030

₹ 955

₹ 12,987

₹ 0

₹ 23,388

₹ 868

₹ 8,399

₹ 69,865

August

₹ 7,290

₹ 1,842

₹ 2,564

₹ 5,210

₹ 0

₹ 26,030

₹ 620

₹ 4,017

₹ 430

₹ 0

₹ 781

₹ 2,000

₹ 50,784

Sept

₹ 21,300

₹ 2,347

₹ 8,669

₹ 100

₹ 95,000

₹ 630

₹ 5,304

₹ 0

₹ 0

₹ 48,910

₹ 2,995

₹ 10,000

₹ 195,255

Oct

₹ 5,729

₹ 1,022

₹ 3,656

₹ 3,230

₹ 0

₹ 12,210

₹ 260

₹ 37,382

₹ 13,123

₹ 80

₹ 709

₹ 0

₹ 77,401

Nov

₹ 14,000

₹ 4,674

₹ 4,215

₹ 5,060

₹ 14,440

₹ 26,913

₹ 810

₹ 7,851

₹ 11,483

₹ 2,203

₹ 2,618

₹ 4,337

₹ 98,604

Dec

₹ 42,000

₹ 2,702

₹ 1,328

₹ 9,930

₹ 16,200

₹ 59,378

₹ 1,638

₹ 11,737

₹ 9,225

₹ 2,070

₹ 580

₹ 35,000

₹ 191,788

Total

₹ 188,399

₹ 24,486

₹ 45,752

₹ 43,882

₹ 140,063

₹ 388,713

₹ 17,603

₹ 99,209

₹ 109,546

₹ 81,951

₹ 16,541

₹ 138,338

₹ 1,294,483

% of Income

8.73%

1.13%

2.12%

2.03%

6.49%

18.00%

0.82%

4.60%

5.07%

3.80%

0.77%

6.41%

59.96%

 



Thoughts for next year: 
Structural change:
1. I will put Maa's mobile bills, landline bill, home electricity bills- all under family. In that case, there is no point of maintaining utility. So, I will change Housing as Upkeep (rent, infra change, electricity bill) and my personal mobile bill ( which is reimbursed anyway) to Personal. Rest everything will remain the same.
2.  I should set some targets for next year. Maybe I have to make the excel sheet smart, so that it keeps showing how much percentage of income I have spent in various purposes month on month.
3. Use the words- inflow and outflow.

Aim:
1. Investment should be 30% of total income.
2. Travel should be 10% of total income.
3. Gift/Help should be 5% of total income
4. Liquid money should be 25% of total income
5. Unknown (like Amit told children education, home maintenance, EMI are something you don't even know now)

All the best for 2018 !


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